The Sun. — London, England, 1818-05-02 00:00:00

to search into the internal affairs of the Batik ; the objects of the Committee would be, to see if it were inconvenient tin the Bank to resume cash pyments in July next, and if so, to see at what time that measure would he most expedient— to inquire into the nature and effects of the foreign loans—to ascertain the probable amotint of gold %I/hid' might be expected from the country to meet the demands of those loans—what the effect of this exportation would be, and what the pro bable loss. He concluded by moving for a Se lect Committee to examine whether there was Pity, and what necessity, for continuing the Bank Restriction Act. The CHANCELLOR Of the EXCHEQUER left it to the House to determine whether any thing that bad fallen from the Right Hon. Gentleman coeld justify the appointment of u- Committee, the la - botirs of which must be endless, anal their result most unsatisfactory. Their report, he was of opi nion, would be likely to leave the House in a greater degree of uncertainty _than they were in at present.--(Hear !)—Th►e labour and ingenuity of the Bullion Committee at last, he believed, left every man in possession of his own previously formed opinion. The Right Hon. Gentleman had assumed that there had been an excessive issue of Bank paper on the acknowledged increase of 2,000,0001. circulated in the last half year. In referring to the criterion which he (the Chancellor of the Exchequer) had formerly laid down, and to which he still adhered, the flight Hon. Gen tleman, in sliming the diminution which had • taken place in the revenue and expenditure of the country, had omitted to touch on one important feature ; in fact, the most itnpot•tant of all, name ly, the internal trade of the country. It appeared that in the last year there had been art increase to the amount of 6,000,0001. on the Exports, but the increase in the internal trade had been much greater. This was not from returns before the House, but from circinustancis which came within the knowledge of every man. In mi instance had there been a more rental kable case of revival in the home trade than that which had occurred in 1817. — The increased issues of the Country Bankers was the consequence of this revival, and the augmen tation of the Bank Notes in circulation had been in part caused by the efforts made by the Bat►k to resume cash payments, as they had•bought large quantities of gold, which they had no means of amassing, bat by an increased issue of their notes. -11aving answered the arguments of the Right Hon. Gentleman on the connexion between the Bank and Government, he proceeded to • notice what bad fallen front him on the price of gold. On the effect produced by the inferiority of the present silver currency, lie admitted the Right Hon. Gen tlen►an had raised a plausible theory, but he would at once answer it by stating the fact, that the new silver, which was six per cent, under the old stand ard in value, was, from the degraded state of the late currency, twenty or twenty-five per cirri.. better• than that had been • . The only cause of the increased price of gold was, in his opinion, the foreign loans negotiated in this country. To sheer the effect of these, be would refer to what bad taken place within the last few years. In the month of January, 1814, the amount of Bank notes in circulation was 23,600,0001: The price of gold was at that tiwe 51. 10s. per ounce. This Ere asci ibed to the 16ans then required. In Janu ary 1815, the amount of Batik-notes in circulation was. 26,300,0001. yet the price of gold fell to 41. 6s. 6d. per ounce. It was said, that if foreign wars were n►ade the pretext for continuing the Bank Restriction Act, we might go on thus year after year,- and a pretext for renewing that mea- sure would never be wanting. It was only, • however, when loans were negociated to an enor mous and unprecedented amount, that he could think of justifying its renewal on such grounds. in 1817 a loan had been raised to the amount of J 2,000,0001. Stock for the use of the French Government. In the present year the loans raised for France amounted, altogether, to 30,000,0001. sterling money. Besides this, it was notorious that a loan of 5,000,0001. had been negociated for Prussia. When such sums were to be raised, those who remembered the Resolutions solemnly co►tse to by the Bank Directors in 1797, declaring that another loan to Russia would ruin the Bank by the drain of specie which it would cause, could not doubt that loans of such immense magnitude as were now negociating made the renewal of the Bank Restriction Act necessary. For tl►e pre amble, which had been so much commented upon, he would admit that it was incorrect ;' he would state the plain truth.-- . --(A laugh.)—The truth was, the preamble had been introduced into this Bill by mistake.—(A. laugh.)—lt had been inad vertently copied from the Bill of last year, And in the Committee he should have to submit to the H•'use an alteration of it. Whatever blame might attach to him for the error, he was bound to state that the preamble, as it now stood, was most un just to the Bank Directors, who had left nothing undone that could facilitate their return to cash payments. Ire 1797, he considered Mr. Pitt to have b e en quite right in referring the subject, then a new one, to a Committee, before the Bank Re striction Act passed, but such a course of pro ceeding appeared to him wholly unnecessary now. The Right Hon. Gentleman wished his Committee to imptire what inconveniences would result from returning to cash payments. He would suggest a counterpart to it—that they should inquire what inconveniences would arise from continuing the Restriction another year. What might hereafter be necessary the Committee could not determine. They might decide what course it would be expe dient now to pursue, but it was impossible to foresee the events which might regulate the policy of the country in a future year. It was not, how ever, likely that loans, like those raised in the present year, would be again called for, or could_ be obtained. - He then defended at some length the Country Hankers' Regulation Bill, and argued,that to pave the way for a more extended circulation of GovernMent paper, it was not likely that Mini sters should beg►n by giving private paper• a'tle geee of security and value which never belonged to it before He denied that he had ever intended to issue Stock Debentures for• general circulation. The advance of the Funds, he contended, had not ouly enriched the greaecapitalisgs, but had bene fited great numbers of indostfions persons who bad small sums in the Stocks ; and to the Funds having got up be attributed in a wear. measure the returning prosperity of the country. Tie next recalled to the House the provision made for re ducing the Unfunded Debt, which could not hut counteract the excessive issues of Bank paper, of which the Right Honourable Gentlemen had complained. But Ge Right Honourable Gen tleman on that, as on other occasions, had .said, that from the absence of a metallic cur rency, the character of the country was now at stake. He would ask if the subsidy of _England has ever been doubted, because she had . a paper circulating medium ? Was it not while she had a paper currency that her triumphant armies had marched over the Continent, and that we had obtained peace' on more advantageous terms than we had ever it gained before. At the close of a war in which, with our paper currency, we were able to subsidize all Europe—and now, after three years of peace, he would say, notwith standing what had been advanced by the Right Hon. Gentleman, that no other country had made any thing like an approach towards the payment of its debt, while oars had already been con siderably diminished, and by the close of the present year would, probably be found to have been reduced by the sum of 17,0001. since the conclusion of the peace. In no other country in 'Europe had the people been relieved from taxes. It as different in Ameriea. There the internal taxes had been taken off, but what proportion did these bear to' the seventeen millions of pounds which had been remitted in this country. He believed the taxes taken off its America might amount to about 8000 dolhrs. Ire the course taken by the American Government, in making all her revenue in peace depend upon resources that would be inteireptcd in war, such Arledge had been given of the pacific disposition of that power as must he most satisfactory to every one who wished well to America or to England. He then re-stated the groue.ds on which he called for a continuance Of the Bank Restriction Act. These he again argued with much force, and concluded by calling on the House to decide whether, under all circumstances, it would be better to encoun ter a real and formidable danger, to escape from evils (supposed to he likely to result from the continuance of the Bank Restriction Act for one year more), which he regarded as visionary and ideal ? Ou these grounds he opposed the motion. Lord ALTHORPti supported the motion, and expressed himself satisfied, that if the Bank were to resume payments in cash, long before the coun try could be drained of bullion, the price of gold would fall so as to correct the evil. Inquiry was particularly necessary at this time, for such a mea sure had never before been justified on the ground of Foreign Loans. With respect to the measure relative to Country Banks, which was for the first time withdrawn, he thought it necessary to ob serve, that the credit of a Country Banker did not entirely depend on his capital. He therefore hoped, that if the plan was again brought forward some alteration would be made as to the mode of making the deposit. He, therefore, thought the House must agree to the motion of his Right Hon. Friend. Sir HENRY PARNELL highly disapproved of the long continuance of the Bank Restriction Act; and he feared, that ,by letting the present oppor tunity pass over, there was danger that the re sumption coi►ld mot take place at all. Under the present systetn, the Right Hon. Gentleman would go on every year making loans ; and that circum stance would also tend to increase the difficulty of resuming the payments. All these things went to show' , the necessity of appointing a Committee of Inquiry. Mr. CHARLES GRANT denied that there was any breach of faith to the country in not resuming the Cash Payments ; for it was impossible for Parliament to have f►rreseen the contingencies that reudered that measure impolitic. But Par liament had redeemed its pledge so far, that the Bank was now able to resume the payments, if the state of the country and our foreign relations would admit of such a step. Nothing was more rash or false, than a blind application of general principles to specific cases ; and nothing could so much defeat the objects of those who would apply such :principles as a precipitate recurrence to a system in opposition to existing contingencies.— What would he the consequence if tl►e Cash Payments were now resumed, and an extraordi nary drain were made upon the Bank ? would not the greatest inconvenience and evil result from such a state of things ? and was it fit that such a risk should be run in the present state of the count try ? i he loans made bytoreign countries must pro duce at all times a great effect on the exchanges. It was well known, that at the time when the Austrian loan was made in this country, although the whole amount was only for three or four millions, such an ut►favourable turn took place in foreign ex changes, that our merchants felt it as a most se rious inconvenience. For the truth of this fact, he could produce the testimony of that eminent n►t -chant, Mr. Boyd. He contended, that all which could be done by a Committee for any practical purpose, could be done by the House in that :discussion ; and that a discretion was to be exercised by the Bank, even in a sound state of currency, according to the exercise of which the currency would be affected. He revered the la bours of the Bullion Cominittee ; but lie thought • they bad not made sufficient allowance for the perturbing causes which were in operation through out Europe. They had attempted to define what was undefinable, in laying down principles upon calculations of an ordinary and extraordinary s:ate of war ; whereas the events which had followed were beyond all calculation in their magnitude and eonsequenees. He then went into a compa rison of the rate of exchange at different periods, and - remarked, that specie had been exported when the silver currency was debased six per cent. which showed the state of. the currency did not regulate the rate of exchange. Two years ago, the House had decided, that in a state of the country like that which at present existed, it would be unsafe to resume cash payments ; and it was therefore unnecessary to go into a Committee. In conclusion, be thought it not impossible that a similar operation was going on in Europe to what took place in this country at the beginning of last century, the effect of which was to make gold the standard of value, instead of silver. From, all the consideration he could give the subject - he felt himself bound to oppose the motion. Mr. J. P. GRANT considered, with his Right Hon. Ft lend, that the present was a new era on this subject ; the House, therefore, ought not to satisfy itself with temporary expedients, but sift the question thoroughly and completely, which could best be done by a Committee. He would tell the Right Hon. Gentleman, who had just sat down, that if he would put his finger on any pas sage in the Reports, made in 1797, on this sub ject, which said that foreign loans affected cash payments, then he would give up the argil ment.—ln proof of his assertion, that no such statement had been made, he referred to the evidence of Mr. Boyd, through whose hands, in 1795, the Austrian Loan 'of Four Millions was transmitted. This Gentleman stated, that the loan was made chiefly in bills of exchange, with 1,430,0001. in Spanish silver dollars, and 150,0001. in Louis d'ors, which were in fact purchased from the Bank a so that they assisted the scarcity of coin by their own sales, if any scarcity existed. - The loan of 1797 was also paid in bills of ex changa, doting the six months prior to the stop page at the Bank ; if gold had been exported, it must have. been at a loss, and yet they were told that the restriction was rendered necessary by the quantity of gold sent out of the country, when in fact the importation of it would have been a profitable speculation. Indeed, Mr. BOyd said, that it would have been a bad remittance of lhe loan if Made in gold, and it was more conve nient and acceptable to the Court of Vienna in, the form in which it was transmitted. Locke had said, that the price of gold Would depend upon the quantity its circulation, and they might as well argue, that because we had an army to feed abroad, _the price of beef would rise in this coun try, as say the state of the currency was affected by loans.. The fact was, that the necessity for the restriction was the effect of the Bank advances to Government, and Mr. Giles had stated, in his evidence before the Bullion Committee, that if those sums had been repaid to the Bank, there would have been no- necessity to suspend their payments in cash. But under the present system, it would be as easy to fill a reservoir, that had. a hole in the bottom of it, with water, as for the Bank to pay all their notes in cash. Mr. Husaissoa said, so much of the argu ments which had been brought forward were ad dressed to the state of the currency, that he could not but advert to the protracted discussions and numerous publications whicla had taken place on the occasion of the former inquiry. He then re ferred to the Report of the Bullion Committee, which he praised , as containing valuable facts and well connected inferences. Until this night he thought there was no longer any difference of opinion on the subject. He thought that those who had been at one time the greatest oppo nents of the Bullion Committee were now agreed that the Bank could not resume cash payments in July without producing touch distress.— To prove that a contracted circulation operated to raise the.rate of exchange at a time when the relative state of the imports and exports produced no such effect, he referred to the rise which took place in the exchange in the year 1816, when the circulation was contracted by the failure of a large proportion of the Country Banks. It would have been perfectly safe . for the Bank, if it had been prepared in other respects, to have resumed cash payments last year, at the time when the exchange was in our favour. But, unfortunately, that state of things no longer existed. We now found the issue of paper increased, and the exchange against us ; and when loans to the amount of upwards of 30 millions had been contracted in this country, were we prepared to return to payments in gold Lord FoaaasToata contended, that the. ques tion before the House was not whether the Re strictions should be taken off or not, butt whe ther the House should go into an inquiry on the subject. He retained the opinions which he had expressed two years ago, and complained that it was now required of the House to embark in a new course, and to continue the Restrictions without laying any onus on the Bank, to resume their cash payments at any particular period. Mr. S. TnoaNToN stated that the sincerity of the intentions of the Bank to resume cash payments might be known from the measures which it had adopted during the preceding year. He then re minded the House of the unpropitious harvests with which the country had been afflicted, and of the ;Jowls which had been contracted by Foreign Powers in this country. The resumption of cash payments would render the Directors of the Bank comparatively independent, by-freeing them from the innumerable attacks which were made every Session upon them. It ought, however, to be carried into execution with great care and prudence. _ _ _ Mr. F. LEWIS urged the necessity of going into the Committee. It was useless to call upon the Bank two years ago to make preparations to re sume cash payments, if, at the expiration of that period, the restrictions were to be renewed, and the gold collected to effect those payments was to be di•posed of for other purposes, so that the Bank would find itself as unprepared as ever, whenever a fresh call might be made for a return to a metallic circulation. Mr. GRENFELL complained of the frequent re newal of the Bank Restrictions, even at periods when the exchange was decidedly in our favour. He contended, in opposition to what had been as serted, that there had been no rise in the price of gold in France from 1817 to the present time. Lord CASTLFREAGH contended that 110 inquiry had ever been proposed to the House which car ried on its face less pLusibility than the present. 'He protested against investigating the motives which had influenced the Bank in making its issues, as it could not be done without infringing private property. All the facts connected with the ques tion were before the House, and might therefore be known without the assistance of a Commit. tee. No one could deny the present state of the exchange; and that there tra3 a tendency in the precious metals to retire out of the coun try. There was. a time when the exchange was in our favour, and the Bank were anxious to re sume cash payments. They might have (loin it on giving the notice prescribed to the Speaker ; but they bad been prevented by distrust of the coutinuauce of the favourable state of the et e 4-0 change. And the result bad proved the jos° of of their tears. What had become of the try° lo d three millions of gold sovereigns whic h e , been issued ? Were any of them to b e I°lm i c, Had they not been carried to' the Contineilie and would not other issues experience `bir ( same fate ? When the Loans contracted 510 tr Foreign Powers should begin to ope rate ' . .a e Bank would have to purchase gold a t an e% i vagant price abroad, and after coining it be tb; would see it melted and carried back again ta7 fo e Continent. When there were 'such rea s°l3s suspending cash payments some time longer , lit should fail' in his duty if he did nut °Me se motion and support the Bill. Mr. TIERNEY replied at considerable lengibe and urged the necessity of an inquiry to sbc' w wi Bank that the House were serious in their 1 that cash payments should he resumed. H e „, v‘ s g l ie convinced that this would be the last str lt rif made for the, resumption of those paymen% o lt the House sheered itself indifferent when a pt motion for inquiry was opposed on d iner i;sl grounds by every Honourable Gentleman w r b° o4 spoken against it, there would be a strong le e ; • in the country that it was intended to contina„-ht paper circulation. The day of reckoning Incrbe be delayed, but it would come at last ; A bt called upon the Hon. Members so to act , " able to say that they bad done their duty Ca country, The House then divided— For the motion Against it.. Majority against the suction.... - --65 The Bank Restriction Bill was then read a • cond time.—Adjourned till Monday. ROYAL VISIT TO THE EXHIBITIO Yesterday morning, about eleven o'clock, 7;i Duke and Duchess of . GLOUCESTER, the Fri"cow AUGUSTA, the Prince and Princess of Hes" " - li t' BERG, the Princess SOPHIA of GLOCCEST"' o th , tended by. Colonel HIGGINS, Colonel PAI; l ' o r• !. BaronCYNAGHTEN, &c. went in three Bor,, a ; c t io4 :. riages to somerset House, to view the Es ilw ;beir of the Arts of the present year, previous ta 'OO opening to the public at large on Monday D e Royal Party were received by the venerable g Oa ' silent, BENJAMIN WEST, Esq. Sir Wsd.lis ßc-- 00 the Keeper, &c. who conducted them over h our • different rooms, which occupied above a i l m ei° and a half. The Royal Party, on leaving °°— its GallerY . o f set House proceeded to the British pictor e ; t o Pall Mall, to view the Exhibition of the Ancient Masters, previous ts) its oP enii3P the public at large on Monday. the At two o'clock the Patrons of the Arts , r o, Members of the Royal Academy, and thei r , P iv titP, cilia'. friends, were admitted by tickets to v i e flop Exhibition, being the hour after the in 9 P ec os eil by the Royal Family, " and when it was 50% 0 4 they would have retired ; however, ah", t h t „ ift 4 o'clock, the PRINCE REGENT, accompanieo u.r 0 t i Marquis Of ANGLESEA and the Right 1 - 1 0 ° ° `, I a lla r tte CHARLES LONG, arrived. The President ;),110 nattily had not left, and received and atte" de r ( ivel PRINCE REGENT. Sir THOMAS LAWRENCI 3 it.i vir tle soon after to attend his Royal Highoe' s ' A i e rte mixed with the Patrons of the Arts, I", TO ' bets of the Royal Academy and their triell"1" t he • PRINCE appeared much affected on behold i l ic es Picture of his beloved daughter the late r 1 ;, 4 . 0 0, CHARLOTTE, and remarked to those in at tent that he recollected seeing her sit for it• ere ct A l The PRINCE REGENT remained in the u• gr a' rooms near two hours, and appeared hi,gh l Y ° tiled with the whole of the Exhibition. LAW INTELLIGENCE• COURT OF KING'S BENCH, MAY I. IN THE MATTER OF MRS. MART DO I/13114. e ite This was a Writ of habeas Corpus, di re , ct- f t ron i this Lady, at the instance of the husbos" he r t ° whom she now lives separate, commatylingLe- Aro, ringupthebodyolheridantdau.hter,agedui ithe t or the purpose of delivering her ; to thec a li j ilstY ri ver. The application had been made i u n en ill' since which time the case had l'aei step quired into before Mr. Lushington, th e i1 (1 by whom, interrogatories were administere 000 Mrs. Dobbin, and by whom a report w its e itlie r made to the Court, stating,. in effect, that 13- e t he the father nor mother were fit persons to Licty care of the child. Mrs. Dobbin appeared in Court, anti n a re' Mr. DCNMAN appeared on her behalf' %I tu g commeuded, under all the circumstances, to th e case, that the question should be referre(;i- We t arbitration of Mr. Lushington, who Sii? tij : . ( W e % under A what circumstances, and at wi' l l l In:Dobbin should have access to her to whose care the latter should be intrust e " . d o f. Mr. SCARLETT appeared for the father, 11° ter some desultory discussion, tigg e : The COURT acceded to Mr. Dennl 2) : l :•rcil -- ,; tion, as one the most proper tinder tm e „;i l 11 % . stances of the case, considering as thcY o u events, that the father was an improper f'",, -5 e of have the care of the child, in consequen,, e l , letter now laid before the Court, contaio'ntt'o dt pressions unbecoming of a father. They er t() ., rected that Mr. Lushington should bav e t _P - •0 t, 11 " direct in whose care the child s hota 1 03 ad e " mean time placed, until his award should be • laf te f r , MARRIED. On Thursday last, at St. NI. R g Smith, Esq. of the lOth .' Royal ar H ea•-in-t'o Sarah '1 .3 04" ..i. c ote -- third daughter of John Bockett, Eusssqa.t SouLo Berks. DIED. ~artt ell-sq" Yesterday, at his house in Montagu-street, Russ John Crawford, Esq. iu his 71st year. late,,‘ On the 28th ult., at Hastings AlatthesV Wa rner ' ,b;sq. Great East Cheap, London, son ' of Isaac Warner' el Blackheath, Kent. as liiis On Saturday evening, at his house on C la p ham-ris„ Scittergood Kemp, Esq. aged 70. -- ', ed LO OrmD NON: Print h J. B. CARSTAIRS, of No. ' 1V , _,0 ond-street, Que y re en-squa; and published , IIY 0 St " SCRIPPS, of No. 7, South Molt on-street, at r130.#1 Office, No. 112, Strand ; where Advertisements, Letters, &c. (post-paid) must be addressed. `-.. *4 4 (4.